The Centre for Economic Reforms in Africa (CERA) has expressed concern over the Federal Government’s failure to pay local contractors who completed projects under the 2024 budget.
In a statement by Director Martins Tayo, the centre said this development has had severe implications for the economy, businesses, and families.
Tayo lamented that many contractors were struggling to stay afloat due to the government’s inability to meet its financial obligations, creating a ripple effect across various sectors and leading to a decline in economic activity.
He said: “The impacts of this failure on the economy and businesses are far-reaching. “The lack of payment to contractors has limited their ability to invest in new projects, expand their operations, and create jobs.”
“This has also affected the livelihoods of thousands of workers employed by these contractors.
“The government’s failure to pay contractors for completed projects has eroded trust and confidence in the government’s ability to manage public finances.
“Furthermore, the failure to pay contractors has also affected the overall economy.”